Winning a World Cup is not without consequences for the economy of a country. In fact, it is almost consistently associated with higher GDP growth during the tournament year.
“In 1994, Brazil registered a growth rate of 5.9%, much more than the two previous and following years”, specifies the private bank in an analysis.
In 2002, another year of victory for the Seleçao, the indicator reached 3.1%, compared to 1.4% and 1.1% registered respectively in 2001 and 2003. “In 2010, when Spain wins, we are in the middle of a recession and we see that growth is somewhat boosted”, the specialist also points out.
Record inflation and massive debt
But Argentina is now mired in deep economic difficulties against a backdrop of record inflation and massive debt. Therefore, in 2022, the price increase should reach 100%. “But the evolution of wages in Argentina is obviously not 100%, so the margin is shrinking for Argentines”, underlines John Plassard.
Will the recent victory of the national team be able to soften this crisis?
In the first place, it will have a positive effect on the consumption of Argentine households. But it will be limited.
Therefore, the Argentine victory should not prevent the Latin American economy from experiencing a sharp slowdown in early 2023.
Source: BFM TV
